I have heard of a fair number of college students, particularly freshman who struggle to adjust to college and have to return home for mental health reasons.

Ex:  A roof in my area cost 9,000 and will last 25 years.  9,000 / 25 yrs is $360 a year. 

The seller wanted to purchase another home with the proceeds from the sale of this one.

The only time I'd say it's an okay idea is if either: The area you're investing in is expecting so much appreciation that you will easily profit off that (watch out for mortgage interest though...the appreciation needs to be higher than what you pay in that and expenses to make it profitable)You have some specific reason for wanting to do it- family ties, future home, major long-term hold, etc.Maybe I'm forgetting another one, but those two are all I have for now...

I currently manage my wife's duplex, and we're hoping to reposition ourselves so we can buy a home to live in and still purchase investment property, but one that can pay for itself.

There is a big difference in how those are handled  HAHA I just saw a post and commented where the person wanted to ask if they should overpay for a home because they can get is seller financing.

The equity gap can definitely be a challenge but there are still deals out there - typically with homes that were purchased in early 2022. 

In addition, condos tend to not appreciate as fast in value compared to single-family or multi-family homes. 

If you rented this home and it was putting $3K positive cashflow yearly in your pocket, the returns would be 3/4=7%.  

Their goal is to eliminated group homes, half way houses etc, even STR, so check out the local zoning as well.